The latest employment numbers give Washington employers something we haven’t seen much of lately: job growth in Washington that significantly outperformed the nation.
According to recently released numbers, Washington added an estimated 21,100 jobs in July 2026, on a seasonally adjusted basis. The state’s unemployment rate also improved, dropping from 5.2% in June to 5.0% in July.
That is a noticeably better monthly performance than we’ve seen during much of 2026. Washington added approximately 10,000 jobs in May, 9,400 in June based on the latest estimates, and then 21,100 in July.
Washington vs. the U.S.
The comparison with the national numbers is particularly interesting.
While Washington was adding 21,100 jobs in July, the U.S. economy actually lost an estimated 23,000 payroll jobs. The national unemployment rate declined slightly from 4.2% to 4.1%.
That leaves us with a somewhat unusual picture:
- Washington: +21,100 jobs; 5.0% unemployment
- United States: -23,000 jobs; 4.1% unemployment
In other words, Washington produced stronger job growth during July, but our unemployment rate remains almost a full percentage point above the national rate.
The National Job Market Is Clearly Slowing
The July national numbers also need to be viewed in the context of revisions to previous reports.
The Bureau of Labor Statistics revised May’s national job growth down from 129,000 to 63,000 and June’s growth from 57,000 to just 20,000. Combined, those revisions removed 103,000 jobs from previously reported employment growth.
The longer-term trend tells the same story. National payroll growth averaged only about 34,000 jobs per month over the previous 12 months, according to BLS. Health care continued to add jobs in July, while local government education and retail trade experienced notable declines.
So while the national unemployment rate remains relatively low, the pace of hiring has clearly cooled.
What Does This Mean for Washington Employers?
For Washington employers—particularly small and mid-sized businesses—the July report is encouraging, but it probably isn’t evidence that the labor market has suddenly turned a corner.
Washington’s 5.0% unemployment rate remains well above the national 4.1% rate, which suggests there is somewhat more available labor here than in the country overall. At the same time, July’s strong job growth suggests employers are still hiring when they have a clear business need.
That combination may actually create a more balanced hiring environment: employers have a somewhat larger candidate pool, but good candidates are still finding opportunities.
Our Take
The most important message in the July numbers may be that Washington and the national economy aren’t necessarily moving in lockstep.
National hiring has slowed considerably, while Washington just posted its strongest month of job creation in several months. One month doesn’t make a trend, but it is a welcome sign.
For employers considering adding staff, this remains a market where careful hiring makes sense. There may be more talent available than there was during the extremely tight labor markets of a few years ago—but finding the right employee still requires a thoughtful recruiting and selection process.
Sources: Washington State Employment Security Department, July 2026 Monthly Employment Report; U.S. Bureau of Labor Statistics, July 2026 Employment Situation.
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